Inside This Issue - News
Amazon bests discounters on pricing
November 28th, 2011
NEW YORK – Despite enhanced shopping experiences and attractive deals online, Walmart and Target Corp. trailed e-tailer Amazon on pricing in the early stage of the holiday season, a recent analysis found.
A study by Deutsche Bank Securities analyst Charles Grom compared online prices from Amazon, Walmart and Target for 50 holiday gift items in the first week of November. The result: Amazon’s basket was cheaper than Walmart’s by 4.5%, or $361.90, and less expensive than Target’s by 8.1%, or $683.52.
Of the 50 items, Amazon was the clear price leader in 20 SKUs, or 40%, and Walmart and Target were the low-price leader for 12 SKUs and three SKUs, respectively. Amazon was the price leader in electronics and movies/books/music; Walmart led in toys and accessories/jewelry/footwear.
"With the lowest price on only three of the 50 SKUs in the study and the absolute highest price on 23 [SKUs], or 46%, of the basket, we were surprised at how uncompetitive Target was compared to Amazon and Walmart’s holiday offering," Grom wrote. "However, we note that Target would have the price lead on 23 of the items after applying the 5% discount from the REDcard."